Financial Accounting 2 Complete Self-Made Notes

MONASH Y1S2
ACW2120
Financial accounting 2
(NOTES)

Individual Assignment 15%
Online Test 15%
Group Assignment 20%
Final Exam 50%

,Content Table
Week 1 Financial reporting, presentation of financial
-
(24/07/23 – 30/07/23) statements, and sustainability reporting
Week 2
Accounting for income tax – Current issues -
(31/07/23 – 06/08/23)
Week 3
Accounting for income tax – Future issues -
(07/08/23 – 13/08/23)
Individual Assignment
Week 4
Property, plant, and equipment – Revaluation (15%)
(14/08/23 – 20/08/23)
[15/08/23]
Week 5
Property, plant, and equipment – Impairment -
(21/08/23 – 27/08/23)
Online Test
Week 6
Business combinations (15%)
(28/08/23 – 03/09/23)
[28/08/23]
Week 7
Consolidation – Introduction -
(04/09/23 – 10/09/23)
Week 8
Consolidation – Revaluation -
(11/09/23 – 17/09/23)
Week 9
Consolidation – Intragroup transactions -
(18/09/23 – 24/09/23)
Mid-Semester Break
- -
(25/09/23 – 01/10/23)
Week 10
Consolidation – Non-controlling interest -
(02/10/23 – 08/10/23)
Week 11 Investment in associate and
-
(09/10/23 – 15/10/23) the accounting for equity
Group Assignment
Week 12
- (20%)
(16/10/23 – 22/10/23)
[16/10/23]
Revision Week
- -
(23/10/23 – 29/10/23)
Final Exam
Final Exam Week
- (50%)
(30/10/23 – 08/11/23)
[08/11/23]

,Week 1: Financial reporting, presentation of financial statements, and sustainability
reporting
1. Example of Statement of Profit or Loss and Other Comprehensive Income (nature of expense
method):
AB6IX Album Shop
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2023
$ $
Revenue 100000
Other income 20000
Changes in inventories of finished goods and work in progress 30000
Raw materials and consumables used 4000
Employee benefits expenses 5000
Depreciation and amortisation expenses 6000
Other expenses 7000
Total expenses (52000)
Profit before tax 68000

2. Example of Statement of Profit or Loss and Other Comprehensive Income (function of expense
method / cost of sales method):
AB6IX Album Shop
Statement of Profit or Loss and Other Comprehensive Income
for the year ended 31 December 2023
$
Revenue 100000
Cost of sales (20000)
Gross profit 80000
Other income 3000
Distribution costs (4000)
Administrative expenses (5000)
Other expenses (6000)
Profit before tax 68000

, 3. Example 1 of Statement of Financial Position:
AB6IX Album Shop
Statement of Financial Position
as at 31 December 2023
Assets Notes 2023 2022
Current Assets $ $
Inventories 2 20000 10000
Trade and other receivables 3 30000 20000
Cash and cash equivalents 4 40000 30000
Other current assets 5 50000 40000
Total current assets 140000 100000

Non-Current Assets
Property, plant, and equipment 6 40000 30000
Goodwill 7 50000 40000
Investments in associates 8 60000 50000
Investments in equity instruments 9 70000 60000
Intangible assets 10 80000 70000
Total non-current assets 300000 250000
Total assets 440000 350000

Liabilities
Current Liabilities
Trade and other payables 11 20000 10000
Short-term borrowings 12 3000 2000
Current portion of long-term borrowings 13 4000 3000
Short-term provisions 14 5000 4000
Current tax payable 15 6000 5000
Total current liabilities 38000 24000

Non-Current Liabilities
Long-term borrowings 16 30000 35000
Long-term provisions 17 32000 41000
Deferred tax 18 40000 58000
Total non-current liabilities 102000 134000
Total liabilities 140000 158000

Equity
Share capital 60000 20000
Retained earnings 70000 2000
Asset revaluation reserve 80000 130000
General reserve 90000 40000
Total equity 300000 192000
Total liabilities and equity 440000 350000